JUN
6 --
OAKLAND
- Drug
Enforcement
Administration
(DEA)
Special
Agent
in Charge
Javier
F. Peña,
Internal
Revenue
Service – Criminal
Investigation
(IRS-CI)
Acting
Special
Agent
in Charge
Diane
Carter
and
United
States
Attorney
Scott
N. Schools
announced
that
several
days
ago,
an information
was
filed
in Oakland
Federal
Court
charging
Shon
Matthew
SQUIER
and
Valerie
Lynn
HERSCHEL
with
conspiracy
to distribute
marijuana,
the
cultivation
and
distribution
of marijuana
and
money
laundering.
These
charges
are
the
result
of an
investigation
by the
DEA
and
IRS-CI.

According
to the
information
filed
June 1,
2007,
Squier,
34, and
Herschel,
23, both
of Hayward,
are alleged
to have
conspired
to manufacture
and distribute
marijuana.
Furthermore,
between
September
and December
2006,
Squier
and Herschel
allegedly
possessed
and distributed
marijuana
out of
Local
Patients
Cooperative,
a Marijuana
Distribution
Center,
located
at 22612-22630
Foothill
Boulevard,
Hayward,
CA. In
addition,
Squier
was charged
with three
counts
of money
laundering
for payments
made for
the purchase
of his
residence
and a
pick up
truck
which
totaled
$617,307.
Herschel
was charged
with one
count
of money
laundering
for the
down payment
for a
residence,
in the
amount
of $85,853.

On
December
12, 2006,
Squier
and Herschel
were arrested
on charges
of conspiracy
to distribute
marijuana
and the
distribution
of marijuana.
In addition
to the
arrests,
special
agents
executed
five federal
search
warrants
at the
following
locations:
the Local
Patients
Cooperative
facility
located
on Foothill
Blvd.,
two associated
residences
in Hayward,
and two
cars.

As
a result
of the
searches
law enforcement
seized
indoor
marijuana
grows,
hundreds
of marijuana
plants,
marijuana
laced
cookies,
brownies,
popcorn,
pies,
candy,
two inert
grenades,
U.S. Currency
and several
high value
vehicles
including
a Mercedes,
Hummer,
Cadillac
Escalade,
Volvo,
Dodge
Truck,
Harley
Davidson
and Ducati
Motorcycles.

According
to the
criminal
complaint,
the Hayward
Local
Patents
Cooperative
attempts
to disguise
the breadth
of its
criminal
activity
by claiming
that it
caters
exclusively
to persons
suffering
from medical
illnesses,
when in
fact persons
without
any medical
condition
can purchase
marijuana
at the
retail
establishment.
During
a recent
inspection
by Hayward
Police
Department,
officers
saw over
200 pounds
of marijuana
at the
location
as well
as numerous
marijuana
plants.

The
DEA and
IRS began
this investigation
approximately
a year
and a
half ago.
Throughout
the investigation
agents
learned
that Squier
was allegedly
the owner
of the
marijuana
distribution
center,
while
Herschel
allegedly
acted
as a manager.
Furthermore,
agents
received
information
that Local
Patients
Cooperative
allegedly
operated
a sophisticated
indoor
marijuana
grow with
multiple
grow rooms,
had hundreds
of pounds
of processed
marijuana
on hand,
along
with a
variety
of marijuana
for sale
and also
offered
miscellaneous
items
such as
edibles,
hash,
kief,
cookies,
brownies
and oils.
Court
documents
revealed
that on
multiple
occasions,
law enforcement
observed
between
20-30
males,
approximately
20-40
years
of age,
entering
the distribution
center
and each
departing
with a
small
white
bag with
the word “Prescription” on
it. The
complaint
also alleges
that the
men entered
the establishment
unassisted
and appeared
to be
healthy.
Furthermore,
agents
have observed
individuals
believed
to be
uniformed
security
personnel
around
the perimeter
of the
building
and at
the entrance
of the
business.

The
mandatory
minimum
term of
imprisonment
for conspiracy
to distribute
marijuana
and the
distribution
of marijuana
charges,
in violation
of 21
U.S.C.
Section
846 and
21 U.S.C.
Section
841(a)(1)
and 841(b)(1)(B)(vii)
is five
years,
with a
maximum
of not
more than
40 years,
a $2,000,000
fine,
a four
year term
of supervised
release.
The maximum
statutory
penalty
for managing
or controlling
a place
for unlawfully
manufacturing,
storing
and distributing
of marijuana
in violation
of 21
U.S.C.
Section
856(a)(2)
is 20
years
imprisonment,
a $2,000,000
fine and
three
years
supervised
release.
The maximum
statutory
penalty
for money
laundering,
in violation
of 18
U.S.C.
Section
1957(a)
is 10
years
imprisonment,
a $250,000
fine (or
twice
the amount
involved
in the
transaction),
and three
years
of supervised
release.
However,
any sentence
following
conviction
would
be imposed
by the
court
after
consideration
of the
U.S. Sentencing
Guidelines
and the
federal
statute
governing
the imposition
of a sentence,
18 U.S.C.
Section
3553.

An
information
contains
only allegations
against
an individual
and, as
with all
defendants,
Squier
and Herschel
must be
presumed
innocent
unless
and until
proven
guilty.

This
case is
being
prosecuted
by Assistant
U.S. Attorney
Shashi
Kewalramani
with the
assistance
of Legal
Assistant
Cynthia
Daniel.
The prosecution
is the
result
of a year
and a
half long
investigation
by the
Drug Enforcement
Administration
and IRS-Criminal
Investigation.